Redx Pharma has signed a deal worth $880m with a Nasdaq-listed US counterpart.
Cheshire-based Redx, which is listed on AIM, has signed a definitive agreement which will see Jazz Pharmaceuticals acquire its KRAS (Kirsten rat sarcoma virus) inhibitor program.
Jazz will make an upfront payment of $10m for all rights, patents, titles and interests relating to Redx’s program.
Redx is eligible to receive up to $870m in development, regulatory and commercial milestone payments from Jazz.
Robert Iannone, executive vice president, global head of research and development of Jazz Pharmaceutical, said: “KRAS is a well-validated oncology target and there remains a high unmet need for innovation in this area based on challenges in developing molecules to target specific KRAS mutations.
The executive vice president disclosed that Jazz Pharmaceutical has discovered several preclinical KRAS candidates. Additionally, the firm plans to leverage its collective oncology development so that it can “identify and advance the most promising molecules” for the clinic.
“This transaction further expands our early-stage oncology pipeline, and we are excited to explore novel approaches to improving treatment options for cancer patients,” Iannone said.
As part of a separate agreement, Jazz will pay Redx to perform research and preclinical development activities.
Redx’s chief executive Lisa Anton added: “Once again, our distinguished expertise in medicinal chemistry has been recognised and we are pleased to secure another strategic transaction with Jazz, with whom we have a track record of collaboration.
“This agreement will allow us to collaborate on the advancement of novel KRAS inhibitors and we look forward to supporting Jazz in progressing these candidates through IND-enabling studies. “
Furthermore, Anton said that partnership is still a “key pillar” of the firm’s corporate strategy. This has enabled Redx to advance in what they “believe are differentiated molecules in areas of high unmet need”, while also allowing them to to create “long-term shareholder value through non-dilutive funding, with the upfront milestone payment from this agreement extending our current cash runway into 2025”.